Panel Calls for ‘Significant’ L.A. Contracting Reform

Mayor James K. Hahn’s blue-ribbon commission on contracting -- convened in the midst of a criminal investigation of the airport, harbor and Department of Water and Power -- has recommended clearer ethical standards for the mayoral appointees who oversee those departments.

“The commission repeatedly heard of serious deficiencies in the contracting, purchasing and leasing practices of each of the proprietary departments,” the members of the panel wrote in a draft report submitted to the mayor’s office.

“There is need for significant reform.”

The commission, which was supposed to complete its work within 60 days of its creation last February, called for clearer procedures for awarding contracts and leases and greater transparency in the contracting process.

It recommended a code of ethics and more long-term planning by the city’s commissions, particularly with regard to contracting, purchasing and leasing.

Over the last year, contracting and leasing at the airport, harbor and DWP have become the focus of increasing scrutiny as federal and local prosecutors subpoenaed thousands of pages of contracting documents from the three departments.

Much of the criticism of contracting procedures focused on the fundraising activities of commissioners, some of whom helped raise thousands of dollars for Hahn and his political causes from some of the same companies that sought business from their commissions.

To address that situation, the City Council last year banned fundraising by city commissioners, a reform initially opposed by the mayor. Hahn later changed his position and is now pushing a more expansive ban on political giving by city contractors.

Carmel Sella, Hahn’s liaison to the commission, said Monday that the mayor was pleased with the report and will propose an implementation plan.